carries about 1.5 billion passengers a year‚ generating about $300 billion in revenue and employing about 1.7 million people. Lots of companies are involved in that industry. The author focused his attention on easyJet because it is the fastest growing low budget airline in Europe. The aim of the report is to identify and analyse the variety of impacts that affect the company. The author has formulated the following objectives in order to meet that aim: - to provide a background information about
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EXECUTIVE SUMMARY Southwest Airlines Co. provides low-fare‚ "no-frills"‚ civil air transportation. The company was incorporated in 1967 and is headquartered in Dallas‚ Texas. As of December 31‚ 2005‚ it operated 445 Boeing-737 aircrafts and provided service to 61 cities in 31 states. The company also provides frequent flyer awards to business partners‚ including credit card companies‚ hotels‚ telecommunication companies‚ and car rental agencies. Southwest Airlines is the fifth largest airline company
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Porters 5 forces Virgin Australia Threat of new entrants – The airline industry has been around for over 100 years and due to large capital requirements and overhead (high cost of planes)‚ the industry would not be greatly affected by new entrants and therefore the threat of new entrants is high. With low operating margins and high initial investment‚ a high market share is needed to ensure full flights (maximizing profits on each flight). This would be difficult for a new entrant. Industry
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company’s mission statement Jet2.com Limited is a British low-cost airline founded in 2002 based at Leeds Bradford Airport‚ England. It operates services from eight UK bases to 54 destinations. “Our aim is to be the safest‚ most responsive and reliable operator of low cost services in Europe” / “The North’s favourite airline” /“Friendly low fares” (Jet.com‚ 2012) Market structure of the low-cost airline industry Market Share: The low-cost airline industry is dominated by a few large companies
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for JetBlue Airway Potential Competitors: Low - Rivalry among existing firms is intense‚ which affect the profits to be low. It¡¦s unattractive to the potential competitors. - High initial investments and fixed costs such as lease a fleet of safe and reliable aircraft‚ negotiate reasonable gate access and landing fees as well as high labor and fuel costs. - There are the price competitions in the airline industry‚ which some major airlines offer the low-price fares that is very difficult for new
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and undermining the profits of the established businesses. In the world today‚ the airline industry is so saturated that there is hardly space for a newcomer to enter the market. The biggest for this is the cost of entry. The airline industry is one of the most expensive industries‚ due to the cost of buying and leasing aircrafts‚ safety and security measures‚ customer service and manpower. Other barriers to entry which will recess new comers into the airline industry include Government restrictions
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was a low cost carrier subsidiary of Delta airlines that started in 2003. It was formed to compete with JetBlue and other low cost airlines for the Florida market. The market environment at the time of the case was extremely difficult with the rising costs of fuel‚ increasing security requirements after 9/11 and customers’ expectations of lower fares. It has forced many big players in the airline industry into bankruptcy. The operational costs which include gate fees‚ ground operational costs etc.
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Airline industry value chain Inbound logistics Primary activites Stock control airlines must store and handle fuel‚ food‚ and drinks. Stock is managed to ensure reductions in stock turnover‚ thus reducing costs and wastage. Route selection airlines must choose their flight routes. These will be selected upon desired routes‚ and deals negotiated with the airports. Airports are selected for their prime location‚ to allow consumers to get to their desired location. This then entails the
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[pic] Accounting project Analysis of the Aviation Industry By Tahir Iqbal A project submitted in partial fulfilment of the requirements for the degree of BA Accounting and Finance at the University of Northampton 2009 Accounting & Finance Field Front Sheet NB. This sheet must be attached to any submission of Accounting & Finance field module coursework made to the Student Assessment Office. No assignment will be accepted without it
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These strengths‚ weaknesses‚ opportunities and threats are summarized in the table below and form the structure of the SWOT analysis. Strengths Weaknesses • Solid financial growth • Strong brand name • Effective business strategy • Delicate cost position • Management team Opportunities Threats • Fleet expansion • New routes and expanded operations • Strong competition • Decline in the European domestic air travel industry • Consolidation in the European air transportation industry
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